More trouble is brewing in the state of Minnesota as a total of 98 mayors took their concerns to state leaders in a letter discussing the state’s fiscal policies. In the letter, the mayors say their cities have been negatively impacted by the policies, pointing out an $18 billion surplus that has been depleted, along with an additional $2.9 billion to $3 billion deficit for the 2028-29 biennium.
The letter, which was also addressed to Gov. Tim Walz, a Democrat and failed vice presidential candidate, expressed their anger over seeing the state fall in national economic rankings. “Fraud, unchecked spending, and inconsistent fiscal management in St. Paul have trickled down to our cities—reducing our capacity to plan responsibly, maintain infrastructure, hire and retain employees, and sustain core services without overburdening local taxpayers,” the letter says.
Cities all over Minnesota are facing serious workforce shortages, a decrease in business investment, rising operational and construction costs, and families deciding to move to other states, the mayors said. They also pointed out potential increases in property taxes due to unfunded state mandates, along with costs that will give cities no other option but to pass the burden over to local residents and businesses.
“There is a growing disconnect between state-level fiscal decisions and the strain they place on the cities we lead,” the letter stated, according to Fox News. “When the state expands programs or shifts responsibilities without stable funding, it is our residents—families, seniors, businesses, and workers—who ultimately bear the cost.”
Some of the unfunded mandates mentioned in the letter include requests for schools, health and human services, and public safety. Members of the Minnesota GOP lay the blame for the financial mess on the shoulders of Walz and Democratic lawmakers, especially in light of the fraud involving the Somali community in the state.
“Governor Walz and Democrats passed unaffordable spending and tax increases along with unfunded mandates on the promise it would make life more affordable,” state Republican Sen. Andrew Lang, who serves as the lead on the Senate State and Local Government Committee, remarked in a statement on the situation. “In reality they just passed down the costs to local governments, schools, and small businesses, who in turn pass down costs to local taxpayers and consumers.
The mayors pointed out in their letter that a state statute exists that requires a balanced budget and that the reliance of the government on one-time surplus dollars has resulted in financial strain. “Our state owes it to our citizens to practice responsible fiscal management and to stop taxing our families, seniors, and businesses out of Minnesota,” they went on to say. “We urge the Legislature to course-correct and to remember that every dollar you manage belongs not to the Capitol, but to the people of Minnesota.”
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A report from TwinCities says that the state passed a $67 billion-two year budget during the 2025 session, with $5 billion in cuts made from the previous year’s budget. While the session planned for 2026 is not focusing on budget crafting, it’s possible Minnesota lawmakers could pass a supplemental budget and make other financial decisions that, if done right, could improve things for the better.